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Dubai Properties ties up with UK's Barclays

The agreement will extend a range of mortgage products to international, regional and local customers wanting to purchase a property from Dubai Properties. Financing will be available for residential and corporate customers as well as investors.

"Dubai is developing into a mature market and having a mortgage offering is an important part of the package," said Dubai Properties' business development director, Business Bay, Shahab Lutfi. "Dubai Properties tries to be innovative and bring new products to clients. We try and add value for our clients in terms of property and financing," he said. "Our aim is to attract international, local and regional customers through Barclays' extensive branch network."

Initially, the focus will be on three developments — the residential complexes, Jumeirah Beach Residence, The Villa and Business Bay and its sub-projects. Mortgages will be available for completed properties as well as those under construction.

Barclays, which entered the mortgage market in Dubai, two months ago has "has been in discussions with Dubai Properties for several months," said mortgage director, Philip Ward who describes the agreement as a "partnership with a small p." He said Barclays decided to enter the mortgage market in response to strong customer demand, from the UK and Western Europe as well as from those living in Dubai.

Where Barclays' offering differs from other lenders, explained Ward, is that residents and non-residents are treated alike, with the same interest rate and the same fees; multiple currency mortgages and equity release options are available with 75 per cent financing available based on the current market value and not the original price.

Barclays has a presence in 60 countries, with a strong focus on the mortgage market in Italy, France and Portugal as well as South Africa, following its recent acquisition of ABSA.

Ward said: "Strategically, [management] wants to diverse the earnings of the Barclays Group and wants to earn at least half of its earnings from outside the UK."

During the last financial year about 40 per cent of the group's earnings came from its international operations, he said.